# Questions about tax forms \[edited title\] **URL:** \ **Category:** Factual Questions\ **Created:** [December 16, 2010, 12:50am UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311 "2010-12-16T00:50:49Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Super\_Kapowzler](https://avatars.discourse-cdn.com/v4/letter/s/a698b9/32.png) [@Super\_Kapowzler](https://boards.straightdope.com/u/Super_Kapowzler)\ **Post date:** [December 16, 2010, 12:50am UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/1 "2010-12-16T00:50:49Z")
**Dear Fans:** If there were a shitload of time, I’d spew tales of my first-days-of-firsthomeowners-shit, like how the first load of laundry spewed shit up through a drain-to-hell in the basement, if “shit” were in _actuality_ “sewage” or “water and golfballs and debris and flotasm” and some shit, I’da know, but I saw it…and my first plumber/root-cleaning-expense. F-U icky-water portal to hell. But I did CRUSH FOR SIZE!! And when I say “size”, I mean “don’t start lookin’ at my zipper.” I bought stock from a company from whom I was working for, through a payroll-deduction ESPP, at a 15% discount, and shit. Like 247@$8.82 and 554@$5.31. I dumped when it hit $11.46 a week ago. Initial investment like $5106.00 pre-tax shit and I guess now I have an account on Etrade for $9165. Somebody needs to explain to me, like I was a\* spacebrain-growin’-Northern-Lights-under-CFL’s-in-a-hidden-area-of-the-stairwell\*, that the first deduction of $5106 gets taxed as income, but the resulting fortune, the “Grapes-of-Cash” MelProfit, gets filed under another form, and by “form” I mean stop looking at my junk. What amounts go on what forms? Word. And what is sound late at night, shit this place freaks me out sometimes ---
**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\ **Post date:** [December 16, 2010, 12:53am UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/2 "2010-12-16T00:53:31Z")
Are you asking about capital gains tax? ---
**Author:** ![Dahnlor](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dahnlor/32/533_2.png) [@Dahnlor](https://boards.straightdope.com/u/Dahnlor)\ **Post date:** [December 16, 2010, 1:02am UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/3 "2010-12-16T01:02:00Z")
The $5106 initial investment is already reported along with your wages on your W-2 (ESPPs are after-tax; it’s your 401k that’s pre-tax), so the only place this specific amount will be on Schedule D (or whatever form you’re supposed to put your Cost Basis on) as your Cost Basis. The full $9165 in proceeds from the sale is reported as income, and the $4059 difference becomes your Capital Gains income. If you held the stock for less than a year, it’s Short Term Capital Gains, and more than a year is Long Term Capital Gains, the latter being taxed at a lower rate. And shit. ---
**Author:** ![Manduck](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/manduck/32/256_2.png) [@Manduck](https://boards.straightdope.com/u/Manduck)\ **Post date:** [December 16, 2010, 1:03am UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/4 "2010-12-16T01:03:20Z")
Capital gizzains, I think you mean. ---
**Author:** ![samclem](https://avatars.discourse-cdn.com/v4/letter/s/a9a28c/32.png) [@samclem](https://boards.straightdope.com/u/samclem)\ **Post date:** [December 16, 2010, 1:05am UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/5 "2010-12-16T01:05:00Z")
Just a side note===========\ You’re obviously an intelligent human being. Very intelligent. Why do you continue to comunicate in this manner? It just slows the process down. IMHO. And shit. ---
**Author:** ![CookingWithGas](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cookingwithgas/32/485_2.png) [@CookingWithGas](https://boards.straightdope.com/u/CookingWithGas)\ **Post date:** [December 16, 2010, 1:21am UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/6 "2010-12-16T01:21:50Z")
It also matters whether this is a Qualified Plan or an ISONS (incentive stock option n shit) plan, as to when the gain is taxed. In some situations a gain is taxable when the option is exercised (the amount the market value exceeds the strike price), in other cases it’s not taxable until you sell the shit. My guess is the latter, as most ISOs are geared towards executives, IIRCNS. I think you’ll be looking at a Schedule D. ---
**Author:** ![Attack\_from\_the\_3rd\_dimension](https://avatars.discourse-cdn.com/v4/letter/a/b38774/32.png) [@Attack\_from\_the\_3rd\_dimension](https://boards.straightdope.com/u/Attack_from_the_3rd_dimension)\ **Post date:** [December 16, 2010, 1:22am UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/7 "2010-12-16T01:22:31Z")
> [@samclem](#): > > Just a side note===========\ > > You’re obviously an intelligent human being. Very intelligent. > > Why do you continue to comunicate in this manner? It just slows the process down. IMHO. And shit. Fo’ shizzle. ---
**Author:** ![mikews99](https://avatars.discourse-cdn.com/v4/letter/m/ac91a4/32.png) [@mikews99](https://boards.straightdope.com/u/mikews99)\ **Post date:** [December 16, 2010, 1:27am UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/8 "2010-12-16T01:27:41Z")
> [@samclem](#): > > Why do you continue to comunicate in this manner? It just slows the process down. IMHO. **And shit.** So people like me can get a really good laugh out of the OP _AND_ replies like ^^^this. Fo reals! ---
**Author:** ![SeaDragonTattoo](https://avatars.discourse-cdn.com/v4/letter/s/df705f/32.png) [@SeaDragonTattoo](https://boards.straightdope.com/u/SeaDragonTattoo)\ **Post date:** [December 16, 2010, 1:43am UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/9 "2010-12-16T01:43:37Z")
He gotta keep dat Supa up in da Kapow, knowwatimsayin? And **Dahnlor** ’s got that answer all up in your ass and shit. ---
**Author:** ![IAmNotSpartacus](https://avatars.discourse-cdn.com/v4/letter/i/cc9497/32.png) [@IAmNotSpartacus](https://boards.straightdope.com/u/IAmNotSpartacus)\ **Post date:** [December 16, 2010, 5:09am UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/10 "2010-12-16T05:09:30Z")
Christ this thread makes me want to stab myself in the eyes ---
**Author:** ![Autolycus](https://avatars.discourse-cdn.com/v4/letter/a/22d042/32.png) [@Autolycus](https://boards.straightdope.com/u/Autolycus)\ **Post date:** [December 16, 2010, 5:36am UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/11 "2010-12-16T05:36:24Z")
And it’s making me laugh like a loon. Different strokes for different fizzolks and shit. That’s what this loopy-dupe board is like all about, amirite? By the way, what is Schedule D. It sounds like an ominous supervillian plan for world domination. ---
**Author:** ![Argent\_Towers](https://avatars.discourse-cdn.com/v4/letter/a/e8c25b/32.png) [@Argent\_Towers](https://boards.straightdope.com/u/Argent_Towers)\ **Post date:** [December 16, 2010, 5:48am UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/12 "2010-12-16T05:48:59Z")
Herbert Kornfeld! ---
**Author:** ![Hilarity\_N.Suze](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hilarity_n.suze/32/6223_2.png) [@Hilarity\_N.Suze](https://boards.straightdope.com/u/Hilarity_N.Suze)\ **Post date:** [December 16, 2010, 5:59am UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/13 "2010-12-16T05:59:08Z")
Don’t worry about it. The IRS knows everything. They will contact you with what you should pay, if they don’t deduct it directly out of your paycheck or bank account. ---
**Author:** ![thelurkinghorror](https://avatars.discourse-cdn.com/v4/letter/t/7c8e57/32.png) [@thelurkinghorror](https://boards.straightdope.com/u/thelurkinghorror)\ **Post date:** [December 16, 2010, 6:15am UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/14 "2010-12-16T06:15:28Z")
> [@Argent\_Towers](#): > > Herbert Kornfeld! Sheeit, no! He ain’t one of dem tax bitchez, H-Dog’s strayt up accountz payabo! ---
**Author:** ![Quercus](https://avatars.discourse-cdn.com/v4/letter/q/7ab992/32.png) [@Quercus](https://boards.straightdope.com/u/Quercus)\ **Post date:** [December 16, 2010, 1:43pm UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/15 "2010-12-16T13:43:30Z")
> [@Dahnlor](#): > > The $5106 initial investment is already reported along with your wages on your W-2 (ESPPs are after-tax; it’s your 401k that’s pre-tax), so the only place this specific amount will be on Schedule D (or whatever form you’re supposed to put your Cost Basis on) as your Cost Basis. The full $9165 in proceeds from the sale is reported as income, and the $4059 difference becomes your Capital Gains income. If you held the stock for less than a year, it’s Short Term Capital Gains, and more than a year is Long Term Capital Gains, the latter being taxed at a lower rate. And shit. Wait, if the $5106 initial investment is after tax (and therefore already declared as income at the time), then why is the full $9165 in proceeds income? Shouldn’t income only be the $4095 difference? Oh, and shit. ---
**Author:** ![Inigo\_Montoya](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/inigo_montoya/32/124_2.png) [@Inigo\_Montoya](https://boards.straightdope.com/u/Inigo_Montoya)\ **Post date:** [December 16, 2010, 1:57pm UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/16 "2010-12-16T13:57:07Z")
> [@Argent\_Towers](#): > > Herbert Kornfeld! Exactly! Jesus—I can’t breathe I’m laughing so hard. And by hard I mean, “stop lookin’ at my jeans!” ---
**Author:** ![Paintcharge](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/paintcharge/32/7946_2.png) [@Paintcharge](https://boards.straightdope.com/u/Paintcharge)\ **Post date:** [December 16, 2010, 4:22pm UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/17 "2010-12-16T16:22:46Z")
Have the Kapowzler and PSXer ever met? My friend wants to know. ---
**Author:** ![dracoi](https://avatars.discourse-cdn.com/v4/letter/d/90db22/32.png) [@dracoi](https://boards.straightdope.com/u/dracoi)\ **Post date:** [December 16, 2010, 5:42pm UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/18 "2010-12-16T17:42:17Z")
With grammar like this, I believe the usual tactic is to ignore the gains, claim your sister’s kid as a dependent for the EIC credit, pay extra for the rapid refund, and pretend like the IRS won’t ever figure it all out. 🙂 As a tax preparer, I’d start by getting documentation from the employer or the broker used by the employer for the sale. Most of the time, a sale from a stock option is reported in W-2 earnings, less a commission. Thus, there’s actually a capital **loss** on Sch D for the amount of the sales commission. The documentation will itemize these expenses and also provide some explanation regarding when/how the stock was acquired/vested, the type of plan it was under, etc. It’s the only way to be sure it gets done right. ---
**Author:** ![KneadToKnow](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kneadtoknow/32/3999_2.png) [@KneadToKnow](https://boards.straightdope.com/u/KneadToKnow)\ **Post date:** [December 16, 2010, 5:55pm UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/19 "2010-12-16T17:55:44Z")
> [@dracoi](#): > > I believe the usual tactic is to ignore the gains And by that you mean … Aw, forget it. ---
**Author:** ![Colibri](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/colibri/32/1841_2.png) [@Colibri](https://boards.straightdope.com/u/Colibri)\ **Post date:** [December 16, 2010, 6:05pm UTC](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311/20 "2010-12-16T18:05:47Z")
Thread title edited for clarity. Original title “So I put a Slizzapin’ down upon Wall Street, in that Bitch’s face, now what?” In the future, please use descriptive thread titles. Colibri General Questions Moderator [Next page](https://boards.straightdope.com/t/questions-about-tax-forms-edited-title/564311.md?page=2)